The Tripartite Cluster for Retail (TCR)’s recommendations that were released on 15 August 2022 covering the new Progressive Wage Model (PWM) have been accepted by the Government. As per the revised model, a three-year schedule of compounded wage increments from 2022 to 2024, will come to effect starting 1 September 2022.
The recommended Progressive Wage Model for retail workers' annual wage increments stipulates that the Baseline Gross Wages would be between 8.4% and 8.5% for the next three years for the three lowest job rungs from
1 September 2022 to
31 August 2025.
The TCR has proposed a career ladder model for the Retail sector with the first three tiers to be subjected to mandatory PWM wage requirements. This aims to provide workers with a clear progression pathway to higher wages, better skills and increased job responsibilities. Mandatory training requirements to upskill workers were also recommended with each retail worker required to complete a minimum of one WSQ training module applicable to the job role.
The implementation of the Retail PWM is aligned with other updates such as the new Local Qualifying Salary requirements, and the extension of the PWM to include in-house cleaners, security officers and landscape workers. Employers with foreign workers under their employment are also required to adhere to these requirements. Failure to do so may lead their work pass privileges to be suspended.
Employers have six months from September 2022 to February 2023 to adjust and comply with the Progressive Wage requirements.
Additional sources:
About 46,000 Retail Workers to benefit from new Retail Progressive Wage Model Recommendations (mom.gov.sg)
Expansion of Progressive Wage approach and coverage (mom.gov.sg)
More Inclusive and Unbiased Workforce in Singapore (rsmstoneforest.sg)